Credit Limit Secured by Real Estate
Նախորդ տարբերակին անցում կատարելու համար սեղմել   այստեղ

Equity credit limit

We care about your goals

We wish to make your goals come true at once. While working to create the best offers for you we consider each detail and create tailored services. The credit limit secured by real estate is a good choice when you need money urgently. You are provided an approved credit limit based on the liquidity value of the real estate and your creditworthiness criteria and you can receive loans, lines or credit and/or overdraft within the scope of the credit limit without further review of the credit file.

Loan amount

Up to AMD 50 million or its equivalent in another currency

Term

Up to 60 months

Fast

If you are not sure about the amount you need at this moment, you don’t have to worry about going through a new lending procedure each time to get a new loan. With a pre-approved credit limit, you can apply to the bank at any time and receive the amount you need within a short period.

Cost-efficient

You only need to pay notary and cadaster fees once when the credit limit is approved and then you are free to utilize amounts within your limit at any time without extra payments.

Convenient

If you have no time to submit the required documents at the given moment, no problem. The credit limit may be provided in the amount of up to 50% of the liquidity value of the pledged property without creditworthiness assessment and in the amount of up to 70% of the liquidity value of the pledged property with creditworthiness assessment.

Are you ready to apply for a loan?

Visit the branch and submit the necessary documents

Financing limit secured by real estate

Loan type

Financing limit secured by real estate

Who may apply

Citizens and non-citizens of Armenia who are resident in Armenia and are aged 18-65

Loan purpose

Personal/family/consumer expenses

Currency

Armenian drams, US dollars, Euros

Form of disbursement

Credit to the account

Loan amount

 

Yerevan

Other areas of Armenia satisfactory to the Bank

If the borrower's creditworthiness is not assessed

Up to AMD 30 million or its equivalent in another currency

AMD 20 million or its equivalent in another currency

If the borrower's creditworthiness is assessed

Up to AMD 50 million or its equivalent in another currency

AMD 50 million or its equivalent in another currency

Term of limit

The limit is effective for 24 months after approval. The limit will be automatically renewed/reissued for another term of 24 months (w/o further re-approval) if the requirements to the credit history and LTV ratio estimated on the basis of the property re-appraisal have been met.

Maximum term set for loans issued under the limit

60 months or such shorter term as may be set for that particular loan type under the limit

Repayment

• Annuity (equal payments),

• Differentiated (non-equal payments) (+0.5%),

• Mixed (+0.5%)

Consumer loan secured by property, within financing limit

Term 

36 months

37-60 months

Nominal interest rate 

15%

16%

Attention.

The adjustable nominal interest rate may be revised no more than twice a year. Furthermore, depending on the change of the adjustable nominal interest rate, the threshold above or below which the nominal rate cannot change is ±4%.

Annual percentage rate

17.6 - 21%

Overdraft secured by property, within financing limit

 

Annual interest rate

Annual percentage rate

 

AMD

USD

EUR

AMD

USD

EUR

ArCa Classic/

Ayo Visa Classic/

Cirrus Maestro/

Visa Electron

17.5%

14.5%

12.5%

19.7-23.4%

15-19.2%

12.8-16.8%

Master Card Standard / VISA Classic 

17.5%

14.5%

12.5%

Master Card Gold/VISA Gold/ 

16.5%

13.5%

11.5%

Master Card Platinum/VISA Platinum 

16.5%

13.5%

11.5%

Line of credit secured by property, within financing limit

Master Card Standard / VISA Classic 

17.5%

14.5%

12.5%

20.7-23.1%

17.2-19.6%

16.1-18.4%

Master Card Gold/VISA Gold/ 

16.5%

13.5%

11.5%

Master Card Platinum/VISA Platinum 

16.5%

13.5%

11.5%

VISA Infinite 

15.5%

12.5%

10.5%

If the borrower's creditworthiness is not assessed: if the pledged property is an apartment or commercial premises in Yerevan, interest rate applicable to the loan to be issued under the limit +1%.

If the borrower's creditworthiness is not assessed: if the pledged property is a detached house* or a land plot* in Yerevan, interest rate applicable to the loan to be issued under the limit +2%.

If the borrower's creditworthiness is not assessed: if the pledged property is an apartment, or commercial premises*, or a detached house*, or a land plot* in any area in Armenia satisfactory to the Bank, the interest rate applicable to the given loan facility +2%.

If the borrower's creditworthiness is assessed: interest rate applicable to the loan to be issued under the limit.

If the borrower's creditworthiness is assessed: where loan-to-value (LTV) ratio is above 60% if pledged property is in Yerevan, or above 50%, if outside Yerevan, interest rate is increased by 0.5%.

Loan disbursement lump-sum fee

0.5% of loan amount or AMD 50,000, whichever is greater


    Not applicable to loans secured by cash, bonds issued by Ameriabank or metal accounts

Repayment frequency

Monthly

Guarantee

Guarantors’ documented income should comprise at least 50% of the borrower's income, and their credit history should meet the criteria set by the Bank.

Late payment fines and penalties

The interest rate specified in the loan agreement shall continue to be applied to overdue loans. Fine in the amount of 0.13 % of overdue loan/interest for each day of delay

Loan formalization venue

Bank

Eligible security

Apartment, commercial premises, detached house and land plot to the reasonable satisfaction of the bank, owned by the borrower or their family member

Maximum loan-to-value (LTV) ratio (if the loan is secured by real estate, vehicles or plant and equipment, calculation is based on their liquidation value)

If the borrower's creditworthiness is not assessed

• If the property is in Yerevan

50% of liquidation value in case of apartments

30% of liquidation value in case of commercial premises        
    30% of liquidation value in case of detached houses

30% of liquidation value in case of land plots

• If the property is in other areas of Armenia satisfactory to the Bank

40% of liquidation value in case of apartments

20% of liquidation value in case of commercial premises        
    20% of liquidation value in case of detached houses

20% of liquidation value in case of land plots*

If the borrower's creditworthiness is assessed

• If the property is in Yerevan

70% of liquidation value of the property (apartments)

• If the property is in other areas of Armenia satisfactory to the Bank

60% of liquidation value of the property (apartments) if the property is in other areas of Armenia satisfactory to the Bank

Additional security

The Bank may request guarantee of individuals and/or companies as additional security.

 

Property appraisal

 

The pledged real estate should be appraised by an appraisal company cooperating with the bank. The company is selected by the client from the offered list.

Appraisal fee: AMD 13,000-30,000* depending on the property.

*On a case-by-case basis, the fee for appraisal of major items of property may be negotiable.

Insurance of property

Insurance of the pledged real estate to be maintained throughout the term of loan:

1. If obtained by client: to the extent of at least outstanding principal

2. If obtained by the bank: to the extent of outstanding principal

Re-appraisal of pledge

Every 24 months during the term of the limit (for re-issuance of non-utilized limit or part of it) Where a revolving line of credit/overdraft has been issued under the limit, property is re-appraised once in 3 years, except where LTV ratio does not exceed 15%.

Satisfactory credit history

Total number of past due days during the previous 2 years should not exceed 30, where the number of consecutive past due days on a case by case basis should not exceed 10. The number of past due days on guarantees past due at the moment of application will be also included in calculation of total number of past due days.

Early repayment

5% of prepaid amount, chargeable if early repayment of the whole or part of loan is made during the first 3 years of loan term. Applicable to loans exceeding AMD 15 million where the credit limit has been prepaid in full. Not applicable to loans secured by cash or bonds.

 

 

[1] Location of real estate to be pledged: capital cities and regional centers of Armenia and Artsakh, as well as the towns of Abovyan, Etchmiadzin, Jrvezh, Arinj, Dzoraghbyur, Tsaghkadzor, Dilijan, Qajaran and Jermuk

 

The real estate or movable property to be pledged should be appraised by an appraisal company cooperating with the Bank. The company is selected by the client from the offered list. Appraisal fee: AMD 13,000-30,000* depending on the property.

 

In addition, the client will pay for the following services:

  • Notary fee: AMD 14,000-16,000 lump-sum (in case of vehicles)
  • Notary fee: AMD 13,000-18,000 lump-sum (in case of real estate)
  • Fee for unified statement from the State Real Estate Cadaster on encumbrance of the property: AMD 10,000
  • Fee for registration of security interest in the real estate: AMD 26,000
  • Fee of the Police of the Republic of Armenia (for lien and pledge of movable property): AMD 5,000 lump sum

*On a case-by-case basis, the fee for appraisal of major items of property may be negotiable.

 

Required documents filed together with loan application

  • Loan application
  • ID (original)
  • Certificate of ownership of property to be purchased/pledged (copy)

Documents required after initial approval

  • Proof of employment and/or other income
  • Marriage (divorce, spouse death), birth certificate (original)
  • Certificates of registration and ownership certificates of vehicles to be pledged (original)
  • Certificate of title to real estate to be pledged (original)
  • Geodetic measurement report of land plot to be pledged**
  • Initial report on appraisal of real estate/vehicle
  • Other documents as the bank's specialist may request

Documents required after loan approval

  • Copies of bases of title to real estate (to be submitted upon request)
  • IDs of owners of property to be purchased/pledged (originals)
  • Copies of marriage (divorce, spouse death) certificates of owners of property to be pledged
  • Statement from the State Committee of Real Estate Cadaster on encumbrance of real estate (unified statement)
  • Statement, issued by the Police, on encumbrance of vehicle
  • Real estate appraisal report (final)
  • Real estate/vehicle insurance policy
  • Other documents as the bank's specialist may request

Be informed when applying for loan:

Purpose

AMD

Modification of the loan terms

15,000

Change of the loan repayment date

5,000

Substitution of pledged property (for real estate; including change of the property owner)

10,000

Substitution of pledged property (for vehicles; including change of the owner of the pledged vehicles)

5,000

Provision of pledge-related consents, permissions and references

5,000 (VAT included)

The fee is charged if the modification is requested by client. Where there are several applicable fees for the same modification, the highest fee is charged and only once. Fees are not applicable in case of loans secured by cash, bonds and metal accounts. If the modification implies adding new pledge or involving a new guarantor, no fee is charged.

ATTENTION! “YOUR FINANCIAL DATABASE” IS AN ELECTRONIC SYSTEM AIMED AT FACILITATING SEARCHING AND COMPARISON OF THE SERVICES OFFERED TO INDIVIDUALS AND MAKING THE CHOICE EASIER FOR YOU.

Last updated on 28.09.2021, 11:50